Oil
NIMASA praises court’s order enabling it to collect fees from oil drilling operations
Modupe ASUDO
LAGOS- THE Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dakuku Peterside, has commended the judgement of the Federal High Court in the case involving Seadrill Mobile Unit Nigeria Limited and the Federal Ministry of Transportation (FMOT), which confirmed NIMASA’s right to collect fees from drilling operations. NIMASA was later joined as a necessary party in the suit originally instituted by Seadrill Mobile Unit Nigeria Limited against the FMOT.
Dakuku said the judgement was “yet another landmark attempt by the judiciary to set the record straight and boost implementation of our Cabotage law, while generating opportunities for jobs.”
Oil Platform
The suit instituted by Seadrill Mobile Unit Nigeria Limited was to determine whether drilling operations fell within the definitions of “Coastal Trade” and “Cabotage” under the Coastal and Inland Shipping (Cabotage) Act, and whether on a proper interpretation of the Cabotage Act, drilling operations fell within the definition of “vessels” under the Act.
On the first issue, the court, presided by Justice Babs Keuwumi, ruled that drilling operations fell within the ambit of exploration, exploitation, or transportation of the mineral or non-living natural resources of Nigeria, whether in or under Nigerian waters, as provided under the definition of coastal trade in the Cabotage Act.
Similarly, the court held that the combined reading of the Admiralty Jurisdiction Act, Interpretation Act, and Cabotage Act meant that drilling rigs fell under the definition of vessel under the Cabotage Act.
Having determined the two questions in the affirmative, the court granted NIMASA leave to collect all outstanding payment of the 2% Cabotage surcharge from owners of drilling rigs and associated platforms.
The implication of the judgement is that oil rigs operating on Nigerian waters are subject to the provisions of the Cabotage Act.
Reacting to the judgement, Dakuku said it marked the opening of an important opportunity for job, incomes, and economic growth. He appealed to persons engaged in inland trade to pay their Cabotage fees and reaffirmed the Agency’s commitment to the enthronement of global best practices in the Nigerian maritime sector.
Dakuku said, “The Cabotage Act is very clear and it has again been interpreted and confirmed by the court. We expect that with this judgement, all parties will obey the court order and do the needful. It is all for the growth of the Nigerian maritime sector and the country’s economy at large.
“On our part, as a responsible Agency, we will continue to sensitise stakeholders, because every craft that is engaged in Coastal and Inland Trade must pay the Cabotage fees.”
The DG reiterated the determination of the Agency to end the Cabotage Waiver regime in the next five years. He said measures had been put in place by the Agency, in collaboration with stakeholders in the sector, to achieve a seamless waiver cessation.
Section 2(d) of the Cabotage Act provides that Coastal Trade or Cabotage means the engaging by vessel in any marine transportation activity of a commercial nature in Nigerian waters and the carriage of any goods or substances whether or not commercial nature within the waters of Nigeria.
NIMASA is the government Agency responsible for regulating and promoting shipping activities as enshrined in the NIMASA Act, 2007.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
NGO Empowers 180 Market Women In Akwa Ibom
Steve Cooper Dismissed As Leicester Manager
Dangote Refinery Cuts Petrol Price To ₦970 per Litre For Marketers
I Am Just A Content Creator – Simon Ekpa Denies Biafran Leadership Role
Adamawa Courts Jail Twelve Internet Fraudsters
National Assembly In Top Gear For Tinubu’s 2025 Budget Presentation
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
